Broad exemption list covers power cables when supporting certificate matches the same supply and invoices.

Broad exemption lists may cover power cables where the wording extends to stores, spares, materials, supplies and consumables needed for operation, repair or maintenance of the specified goods; on that construction, the cables were treated as falling within List 12. Subsequent production of a DGHS certificate was accepted where it related to the same purchase order and supply and could be reasonably correlated with the invoices; on those facts, the exemption condition was treated as satisfied. The demand, interest and penalty were set aside because exemption could not be denied on a narrow or technical reading.

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Issues: (i) Whether power cables supplied under the relevant exemption notification were covered by List 12 of Notification No. 21/02-Cus. dated 01.03.2002. (ii) Whether the subsequent production of the DGHS certificate satisfied the exemption condition and supported the grant of exemption.

Issue (i): Whether power cables supplied under the relevant exemption notification were covered by List 12 of Notification No. 21/02-Cus. dated 01.03.2002.

Analysis: List 12 was read as covering not only the specifically named cables and connectors, but also stores, spares, materials, supplies and consumables required for running, repairing or maintenance of the goods specified therein. Since the list included a wide range of machines and equipment, power cables were held to be reasonably covered within that scope.

Conclusion: The power cables were covered by List 12 and the objection on that ground was rejected.

Issue (ii): Whether the subsequent production of the DGHS certificate satisfied the exemption condition and supported the grant of exemption.

Analysis: The certificate was subsequently produced and was found to relate to the same purchase order and supply. The quantity mentioned in the certificate was treated as sufficiently referable to the invoices issued for the goods, and the certificate was taken as supporting the eligibility of the impugned goods for the exemption.

Conclusion: The exemption condition was treated as satisfied on the facts, and the demand could not be sustained.

Final Conclusion: The demand, interest and penalty were set aside and the appeal was allowed in full.

Ratio Decidendi: Where the language of an exemption list is broad enough to cover the disputed goods and the supporting certification is produced and reasonably correlates with the same supply, exemption cannot be denied on a narrow or technical reading.

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